The African Export-Import Bank (Afreximbank) is encouraging Ethiopian businesses and financial institutions to take advantage of the USD 1 billion allocated for the country over the next year. This initiative coincides with Ethiopia’s steps toward greater currency convertibility, as highlighted by the National Bank of Ethiopia (NBE), which emphasizes the continental bank’s role in directly financing businesses.
Recently, Afreximbank conducted a two-day roadshow in Addis Ababa, its second in four years, to demonstrate its commitment to supporting Ethiopia’s economic development, which is being propelled by significant policy reforms.
Fikadu Digafie, Vice Governor and Chief Economist of the NBE, noted the success of Ethiopia’s macroeconomic reforms over the past ten months. He described the roadshow as timely, given the country’s ongoing economic transformation, and underscored the need for collaboration between banks, the private sector, and the continental financial institution.
The event at the Hyatt Regency Hotel also featured remarks from Eric Monchu Intong, Acting Group Managing Director for Client Relations at Afreximbank, who praised Ethiopia’s economic reforms and increased public investment.
Despite being a founding member of Afreximbank, Ethiopia has not fully utilized the institution’s resources. Over the past five years, the country, which is Africa’s second-most populous nation, has accessed only USD 2 billion in financing—significantly less than other key members.
Monchu Intong highlighted that Afreximbank has been actively supporting Ethiopia since 2021 under the Africa Trade Facilitation (AfTRAF) Programme, following a framework agreement with the NBE.
Initially, the bank collaborated solely with state-owned financial institutions, but it has since expanded partnerships to include 14 commercial banks. This expansion has facilitated the importation of essential goods such as refined petroleum, fertilizers, pharmaceuticals, and edible oil, as well as trucks and trailers critical to Ethiopia’s logistics supply chain.
Monchu Intong urged Ethiopian businesses and banks to leverage Afreximbank’s resources more effectively, emphasizing its role in promoting and financing intra- and extra-African trade.
“We are here to change the former narrative and ensure Ethiopia, like our other 53 member countries, benefits appropriately,” he stated. “We encourage stakeholders to present bankable transactions to us so that we can process and disburse at least USD 1 billion over the next 12 months to both the public and private sectors.”
He outlined key focus areas, including trade-enabling projects such as airports, railways, industrial parks, manufacturing, value-added exports, and corporate trade loans. “These investments will help improve Ethiopia’s macroeconomic indicators by 2025 and beyond,” he added.
Fikadu urged Afreximbank to expand its services beyond trade facilitation to include direct financing for firms, especially as Ethiopia’s reforms enhance currency convertibility.
“We ask Afreximbank to support our economy in various ways,” he stated. “While it has primarily focused on trade facilitation in Ethiopia, it offers direct loans to the private sector in countries like Nigeria and Egypt.”
He encouraged commercial banks currently collaborating with Afreximbank to strengthen their partnerships and urged others to enhance their balance sheets to qualify for trade financing, particularly for essential imports such as fuel.
“The reforms we are implementing are vital for businesses and banks to access international funding,” Fikadu said. “At the same time, we are improving the macroeconomic environment to foster partnerships with global financial institutions.”
Vinay Aiyappa, a consultant involved in agricultural projects in Ethiopia, emphasized the significance of institutions like Afreximbank in light of the country’s foreign exchange challenges.
“Ethiopian banks are capable, but due to forex constraints, we need external financial partners,” he explained. “Much of the machinery and equipment we require is priced in dollars, making trade financing partners like Afreximbank essential to bridge that gap.”
Ethiopia has been a founding member and shareholder of Afreximbank since its inception in 1993, with key stakeholders including the National Bank of Ethiopia, the Commercial Bank of Ethiopia, and the Ethiopian Insurance Corporation.
Experts believe that as Ethiopia continues its economic reforms, Afreximbank’s increased involvement could be crucial in supporting trade, industrialization, and macroeconomic stability.
